Motorists from another state register cars in Virginia to avoid insurance costs in their own state

A spokesperson for the Virginia Department of Motor Vehicles confirmed that a Virginia address is not a requirement for legally registering a car or truck in the state. It is among only a handful of states with such a policy on the books. That’s why thousands of Marylanders have been registering their vehicles in Virginia for many decades.

Virginia allows drivers to pay an uninsured motorist fee instead of buying auto insurance. Besides, Virginia’s Department of Motor Vehicles doesn’t require motorists to live in Virginia to have their vehicles registered there.

New rules in Virginia

Starting July 1, 2024, Virginia will no longer allow motorists to pay the $500 uninsured motorist fee instead of having auto insurance. Motorists with vehicles registered in Virginia will be required to show proof of insurance.

Meanwhile, a Maryland state lawmaker has introduced legislation that would empower the city to tow cars not properly registered with the Maryland Motor Vehicle Administration.

The Washington Post reported in 1987 that as many as 40,000 Marylanders were registering their cars in Virginia to avoid higher taxes and insurance, causing Maryland to lose up to $10 million in revenue.

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